Mamdani calls for 2% tax hike on wealthy New Yorkers

New York City Mayor Zohran Mamdani on Wednesday has called for a two percent tax increase for New Yorkers making ‌over a million dollars a year, along with a hike in the state's corporate tax rate, proposals he originally championed during his campaign.

During testimony before the New York State Senate's 2026 budget hearing, ‌Mamdani, a Democrat, said the city's budget gap has decreased from $12 billion to $7 billion ‌by "assuming an aggressive posture on savings without compromising city services, incorporating updated revenue and bonus estimates, and using in-year reserves." Despite a narrowing of the budget shortfall, Mamdani said, New York is "placed on a ledge."

"I believe the wealthiest individuals ⁠and most ​profitable corporations should contribute ⁠a little more so that everyone can live lives of dignity," said Mamdani, who will release the city's preliminary ⁠budget on Tuesday. "That’s why—along with raising the corporate tax—I’m asking for a 2% personal income tax increase ​on the most affluent New Yorkers."

Mamdani said a two percent tax increase would resolve ⁠nearly half of the city's budget deficit. He campaigned to increase the New York's corporate rate from 7.25% to 11.5%. Democratic ⁠New ​York Governor Kathy Hochul would have to approve any tax increases proposed by Mamdani.

A spokesperson for Hochul did not immediately respond to a request for comment. The governor, who ⁠presented her budget last month, has reiterated her opposition to any tax hikes in the state.

"We’re ⁠able to make ⁠transformative investments in our future. Without raising taxes. Without saddling the next generation with mounds of debt," Hochul said last month.